Instructions For Form Tc-20s - Utah S Corporation Tax Return - 2012 Page 14
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28A taxpayer who is a shareholder in an S corporation
Compensation is paid in Utah if:
must include their pro rata share of the corporation’s
1. the individual’s service is performed entirely within
sales in determining whether it meets the “50 percent
Utah;
of total sales everywhere” requirement above.
2. the individual’s service is performed both within and
A taxpayer who is a sales factor weighted taxpayer
outside Utah, but the service performed outside
must calculate the apportionment fraction under Part
Utah is incidental to the individual’s service within
3, lines 14 through 16.
Utah; or
3. some of the service is performed in Utah and:
Other Multistate Taxpayers
a. the base of operations or, if there is no base of
For multistate taxpayers that are not sales factor
operations the place where the service is directed
weighted taxpayers, an election may be made to double
or controlled, is within Utah, or
weight the sales factor in the apportionment calculation.
The election is made by entering an “X” on line 10 and
b. the base of operations, or the place where the
completing lines 11 through 13 on Schedule J.
service is directed or controlled is not in any state
where some part of the service is performed, but
Income or loss from partnership or joint venture inter-
the individual’s residence is in Utah.
ests must be included in income and apportioned to
Utah through application of the three-factor formula
Amounts reportable for employment security purposes
consisting of property, payroll and sales.
may ordinarily be used to determine the wage factor.
For apportionment purposes, the portion of partner-
Overall wages, including Utah, are listed in column B.
ship or joint venture property, payroll and sales to be
Line 4 – Payroll Factor Calculation
included in this taxpayer’s property, payroll and sales
factors must be computed on the basis of the taxpayer’s
Determine the payroll factor (decimal) by dividing line
ownership interest in the partnership or joint venture.
3a column A by line 3a column B.
Lines 5a - 5h –
Sales Factor
Business Activity
The sales factor is the fraction the sales/receipts within
Utah for the taxable year bear to the overall sales/
Briefl y describe the nature and location(s) of your Utah
receipts for the taxable year. Gross receipts from the
business activities in the space provided at the top of
performance of services in Utah are assigned to the
this schedule.
Utah sales numerator if the purchaser of the service
receives a greater benefi t of the service in Utah than
Lines 1a - 1f –
Property Factor
in any other state.
Show the average cost value during the taxable year
of real and tangible personal property used in the busi-
Taxpayers that perform a service both in and outside
ness within Utah (including leased property) in column
Utah must include service income on line 5g in column
A and overall (including Utah) in column B.
A (Inside Utah) if the purchaser of the service receives
a greater benefi t of the service in Utah than in any
Property owned by the taxpayer is valued at its original
other state. The former “cost of performance” method
cost. Property rented by the taxpayer is valued at eight
no longer applies. (See UC §59-7-319(3)(a).)
times the net annual rental rate. Net annual rental rate
is the annual rental rate paid by the taxpayer less the
Sales of tangible personal property are in Utah if the
annual rate received by the taxpayer from sub-rentals.
property is delivered or shipped to a purchaser within
Utah regardless of the F.O.B. point or other conditions
The average value of property must be determined by
of the sale, or if the property is shipped from an offi ce,
averaging the cost values at the beginning and end of
store, warehouse, factory or other place of storage in
the tax period. However, monthly values may be used
Utah and:
or required if monthly averaging more clearly refl ects
the average value of the taxpayer’s property.
1. the purchaser is the United States Government,
or
A supporting schedule should be attached whenever
monthly averaging is used.
2. the taxpayer is not taxable in the state of the pur-
chaser.
Enter totals of lines 1a through 1e in their respective
columns on line 1f.
Overall sales, including Utah, are listed in column B.
Line 2 – Property Factor Calculation
Note: Securities brokerage businesses must follow the
Determine the property factor (decimal) by dividing line
provisions in UC §59-7-319(6).
1f column A by line 1f column B.
Enter totals of lines 5a through 5g in their respective
columns on line 5h.
Line 3 – Payroll Factor
Wages, salaries, commissions and other includable
Line 6 – Sales Factor Calculation
compensation paid to employees for personal services
Determine the sales factor (decimal) by dividing line
must be included in the Utah factor to the extent the
5h column A by line 5h column B.
services, for which the compensation was paid, were
rendered in Utah.
Page 12
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial